SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Accent Softwr (acntf): Addressing Huge Multilingual Mkt?
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Timna M. Hurwic who wrote (56)5/2/1997 1:38:00 AM
From: SteveC   of 356
 
Thanks for the post Timna -- continuing our dialogue on Accent (I wonder if anyone else follows this company on SI?) -- I am quite relieved with Accent's 1Q '97 results. There is light at the end of the tunnel. Obviously, given the stocks performance in '97 I've been wondering why I ever bought it. I don't know him, but Todd Oseth all of a sudden has become an important person in my life! I am quite impressed with the company's 1st Quarter turnaround. Oseth has focused the company on business to business sales, drastically reduced its money losing direct retail operations, maintained its large product development core and provided a clear vision for its future. Accent is still a speculative investment, but I no longer fear my shares are going to become worthless. The upside potential is enormous and no longer a fantasy.

I listened to the company conference call. Here are some of hightlights:

-- The 1st quarter '97 loss is the company's smallest loss in 5 quarters. For the remainder of '97 Accent expects to narrow its expenses and to increase its revenues. Accent does not project a positive quarter until early '98. However, it should have profitable months in '97.

-- Oseth said he's hopeful Accent will exceed $1M in revenue for 2nd Q '97. To date, the company is achieving its anticipated rate of revenue for the 2nd Q '97.

-- The company is well positioned in its cash position for '97 ($4.3M and $1.7M in receiveables). There is little debt on the balance sheet, mainly involving a government loan which they are seeking to renegotiate.

-- Cost of sales were heavily impacted by prepaid software royalties and inventory write downs. Much of this is behind Accent now and the company sees no increase in cost of sales. Marketing and administration expenses might increase later in the year with the introduction of new products and the transition of employees to the American office.

-- The Global Development Kit is being targetted toward software developers and the company will contract directly for services with corporate customers. Webtamer will be launched in the 2nd Q and the focus of the company's internet automation strategy.

The per share loss dropped from .41 cents in 4th Q '96 to .17 cents in 1st Q '97. If the company could achieve a similar improvement in its per share results for 2nd Q '97, obviously it would generate a quarterly profit. Since that isn't projected and most of the "big ticket" expenses have been eliminated, I imagine the hard part comes now. Assuming the company's expenses can be reduced to a little over $2M a quarter, Accent needs to triple its quarterly revenues to generate a profit. I hope Accent's products are a hit and Oseth is the person to jump start Accent to profitability.

Good luck with your investments!
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News